On this page of StockholderLetter.com we present the latest annual shareholder letter from American Water Works Company, Inc. — ticker symbol AWK. Reading current and past AWK letters to shareholders can bring important insights into the investment thesis.

 •  3/26/2024 Letter Continued (Full PDF)
 •  3/28/2023 AWK Stockholder Letter
 •  More "Water Utilities" Category Stockholder Letters
 •  AWK Benford's Law Stock Score = 89

AWK Shareholder/Stockholder Letter Transcript:

2023
Annual Report


TO OUR
SHAREHOLDERS,
Through changing economic circumstances and the
evolving needs of our customers and the communities
we serve, American Water and its nearly 6,500
employees deliver consistent and reliable performance
for all of our stakeholders. In 2023, we continued that
tradition of excellence by focusing on our business
fundamentals, leading in customer satisfaction, and
operating in the most effective and efficient manner.
As always, we remain vigilant in our efforts to meet or
exceed existing and emerging water quality standards.
For the five years ended December 31, 2023, our total
shareholder return (TSR) was 58 percent, exceeding that
of the Philadelphia Utility Sector Index (UTY)
(41 percent) and reflecting our significant earnings
growth in recent years. Also, our company greatly
strengthened its balance sheet with our successful
equity issuance in early 2023, providing a solid
foundation for capital investment in the years ahead.
per share dividend has grown at a compound annual rate
of approximately 9.3 percent over the last five years.
These results are an outcome of our commitment and
adherence to our company values and sound execution
by our dedicated employees of our business strategy.
The American Water Board of Directors would like to
thank our shareholders for their continued trust and
support. Please plan to join our virtual Annual Meeting of
Shareholders at 10:00 a.m. Eastern Time on Wednesday,
May 15, 2024.
Sincerely,
KARL F. KURZ
Board Chair
Consistent with these excellent results and our
expectations for strong future earnings and customer
growth, the Board again increased our quarterly dividend
in 2023, the 15th consecutive year of increases. Our
5-YEAR TOTAL
SHAREHOLDER RETURN
AMERICAN WATER | 2023 ANNUAL REPORT
58%
RETURN
1

DEAR FELLOW
SHAREHOLDERS,
As we share American Water   s 2023 achievements and
work to sustain and improve upon them in the future,
you will see that we remain committed to our mission
to provide clean, safe, reliable and affordable water and
wastewater services. A mission that we believe will make
a positive impact on communities for generations.
Through our disciplined approach to capital investment
and regulatory execution, we continue to offer
shareholders a compelling growth opportunity while
helping to address water and wastewater challenges
across the country.
Illustrating our future outlook, our growth waterdrop
portrays how you, our shareholders, can expect American
Water to consistently execute for the long term. Rate
base growth is at
the foundation of our
earnings growth
story, combined with
a robust regulated
acquisition strategy
and organic growth
from our Military
Services Group     all
resulting in an
expected 7 to 9
percent compounded
long-term earnings
growth rate.
2
In 2023, our capital investment totaled $2.7 billion, and
we are well on track to deliver $3.1 billion in investments
in 2024. American Water is making these critical and
needed investments as we stay keenly focused on
customer affordability. Key to that focus is our culture of
continuous improvement and a belief we can always find
better, more efficient ways to work.
Enabling our growth is a true competitive advantage
that stems from American Water   s diverse regulated
operations across 14 states. This results in flexibility
in capital deployment, mitigation of risk around weather
variability impacts, and the use of best practices across
our diverse operating footprint.
We also successfully completed an equity issuance in
2023 that strengthened our balance sheet to support
our robust long-term capital plan. The success of this
issuance provides yet another indicator that the American
Water investment thesis remains strong and reflects the
leadership role we play in the utility sector.
Our leadership role extends to strengthening our
partnerships with communities that are increasingly
grappling with the future of water quality, quantity and
reliability challenges, including lead, copper, and the
presence of PFAS in drinking water. This includes lending
our expertise to drinking water standards that protect
public health and advocating for sound policy that aids
our industry in achieving compliance for the benefit of
customers.
AMERICAN WATER | 2023 ANNUAL REPORT

Our future growth prospects are even more impactful as
our shareholders consider American Water   s commitment
to sustainable business practices. Our most recent
Sustainability Report, issued in 2023, highlights our
understanding of the impact that our operations have on
the environment and society and our role as stewards of
the most precious and essential natural resource: water.
American Water   s efforts have been recognized as one of
Newsweek   s World   s Most Trustworthy Companies 2023,
Newsweek   s America   s Most Responsible Companies
2024, and inclusion in the top 10 percent of America   s
Most JUST Companies by JUST Capital and CNBC, among
others.
American Water has had the privilege of serving
customers and communities across the nation for more
than 135 years. We celebrated our journey as a publicly
traded company at the New York Stock Exchange last
September. Our team   s dedication and hard work, as
well as the trust our shareholders place in us, are a
testament to our success. Recently, American Water was
also recognized by Forbes ranking as the number one
utility on their America   s Best Large Employers 2024 list.
We are grateful to our employees for their contributions,
and we are honored to work with a team that cares for
our customers and each other.
We believe the combination of our earnings and dividend
growth, supported by our significant, low-risk, capital
investment plan, and our focus on customer affordability
and ESG leadership, will continue to be rewarded by our
AMERICAN WATER | 2023 ANNUAL REPORT
investors. Based on our long-term plan and our history of
executing our strategies, we intend to continue to deliver
a very competitive, sustainable shareholder return for
many years to come.
We are proud of what we have achieved in 2023 and glad
you have chosen to invest in American Water. We thank
you for your continued support.
Sincerely
Sincerely,
M. SUSAN HARDWICK
M
President and Chief Executive Officer
3



 3/26/2024 Letter Continued (Full PDF)